A solid performance for AfrAsia Bank’s first quarter with profit up by 113%
For the three months ended 30 September 2022, AfrAsia Bank had a favourable financial performance with a significant increase of 113% in net profit after tax (NPAT) reaching MUR 728.6m, compared to MUR 342.8m in the same period last year.
This performance was mainly driven by a general uptick in yield levels and improved fee income.
The Bank’s balance sheet remains robust, with total assets standing at MUR 217.5bn, up 12% compared to September 2021. Loans and advances improved by MUR 13.7bn to reach MUR 41.7bn (September 2021: MUR 28.0bn) as at end of September 2022 and loan-to-deposit ratio increased to 20% from 15% in the same period last year.
On the liability side, the Bank’s deposits base rose by 11%, rising from MUR 184.5bn as at end of September 2021 to MUR 204.6bn by the end of September 2022, which demonstrates our customers’ confidence level in the AfrAsia brand.
As a result of an increase in loans and advances, the Bank witnessed a rise of 220% in net interest income to reach MUR 901.7m in this period from MUR 281.7m in September 2021. Likewise, net fee and commission income, a major contributor to the NPAT rose by 32% from MUR 150.0m in September 2021 to MUR 198.4m as at end of September 2022, primarily supported by a higher volume of transactions resulting in a growth in commissions.
The Bank’s total capital adequacy ratio stood at 15.38% against a regulatory limit of 13.50% as at September 2022, in comparison to 16.09% as at September 2021.
“Our results for this quarter show that we are heading in the right direction - we have had an excellent start to the year with a healthy growth, increasing profitability and improved asset quality, resulting from the ongoing support of our customers and the dedication of all AfrAsians to uphold our client promise. This has surely set the ideal momentum for us to achieve sustainable growth, for our Bank, our people, our clients and our community.” commented Thierry Vallet, Interim CEO at AfrAsia Bank.